FISCAL REVOLUTION

2018 NEW FISCAL MEASURES ADOPTED

Government adopts the so-called `fiscal revolution` despite protests

After days of controversy and mass pro-tests, Government adopted, during meeting from today, the Emergency Ordinance that modifies the Fiscal Code.
The majority of fiscal changes announced a few weeks ago by the Cabinet were adopted today, including transfer of contributions from employer to employee, work insurance contribution of 2,25% for companies, but also transposition of the provisi-ons of Directive 2016/1164/EU into national law to combat the outsourcing of multinational companies’ profits. Increase of minimum wage will be adop-ted separately by a Governmental decision in the coming weeks. Also, the Government approved an Emergency Ordinance that decreases contributions to the private pensions funds, Pillar 2, from 5,1% to 3,7%. During Governmental meeting of today both PM Mihai Tudose and Minister of Finances Ionut Misa made harsh accusations against the multinati-onal companies, which were accused by the two of being behind the protests, but also of hiding their profits in other countries. Also, accusations were made against banking system from Romania.
After the adoption of the `fiscal revolution`, trade unions announced new protests in the coming days, while the leaders of the National Liberal Party will submit a censure motion against Tudose Govern-ment.

What is next?

The Ordinances will be published in the Official Gazette and will be debated also in the specialized committees of the Parliament. Most probably, the debate will be prolonged as discussions on 2018 state budget will be opened soon.

Protests, both of trade unions and other professional categories, will intensify as Government refuses dialog.

Leaders of the coalition will inten-sify anti-multinational discourse in order to offer a certain legitimacy to the fiscal measures and to change attention of the public opinion.